Dutch pensions group APG and London Central Portfolio’s (LCP) London hotels investment venture is investing £76.5m (€84.4m) to buy the Wellington block.

The Portfolio Club (TPC) has agreed to buy the freehold island site located on the south-east corner of Covent Garden from Capital & Counties Properties (Capco).

The Wellington block comprises six separate properties and has recently received planning consent to develop a 146-room hotel with retail and restaurant space.

Naomi Heaton, CEO of The Portfolio Club, said: “We are delighted to have secured the Wellington block, a unique combination of architecturally beautiful buildings.

“Covent Garden, under Capco’s stewardship is an increasingly thriving and sought after location with huge appeal to both the domestic and international market.”

TPC was launched last year to create a new lifestyle hospitality brand in prime central London locations. In December last year, TPC acquired the Harrington Hall Hotel in South Kensington as its first asset.

Heaton said the Wellington block asset will be a cornerstone of TPC’s new lifestyle brand of residents’ clubs to be rolled out in prime central London neighbourhoods and internationally, following the acquisition last year of the Harrington Hall Hotel in South Kensington.

Robert-Jan Foortse, head of European property investments at APG, said: “APG is delighted to further broaden The Portfolio Club investment programme with the acquisition of the Wellington block in Covent Garden.

“This represents an attractive opportunity to gain access to a high-quality property in an unrivalled location and to add value through redevelopment and innovation.”

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